Including the current government closure, there have been 18 shutdowns since 1976. The debt ceiling has been raised virtually every year back to 1939, and in some instances multiple times per year. So, what’s the distinction between the two and how are they related? And, what do they tell us about future stock returns?
A lawsuit brought against 401(k) plan giant Fidelity by its own employees underscores—yet again—the importance of minimizing investment costs.
Everyone knows interest rates have nowhere to go but up. It is only logical to avoid the inevitable “bond crash” by selling now, right? Not so fast.
Successful long-term investing is a function of persistence and patience, not timing. A well-diversified portfolio can withstand market cycles and deliver solid, long-term returns without subjecting the investor to the risk and stress of accurately choosing entry and exit points.
Why—in the face of such overwhelming evidence to the contrary—do investors and managers continue to believe they can ‘outperform’ markets? Two words: Fees and Overconfidence. The latter suggests investors are living in a fairy tale world where everyone is strong, good-looking and an above-average stock picker. But two of the world’s most sophisticated institutions are waking up to the fact active management has failed them. Shouldn’t you?